The objective is to grow its net assets by selecting stocks that are listed primarily on the international equity markets, and to outperform the MSCI World index, over the recommended investment period.
Global Value gained way in December, driven in particular by US stocks which welcomed Congress's approval of tax reform. Anticipation of pro-cyclical fiscal policy has led to a slight rise in the yield on the US 10-year T-note, thus penalising sectors perceived as more defensive. Banking stocks (Bank of America, JP Morgan) and cyclicals (commodities) are among the direct and indirect beneficiaries of a cut in the corporate tax rate and potential acceleration of capital expenditure. Energy stocks have begun their catch-up: US oil accelerated its rebound at the year end, closing 2017 at around $60/bbl, gaining 5% in December and 12% over the year. Our stocks posted growth of 10%-15% in December but remain down by -10% and -30% over the year, reflecting investor scepticism as to the continuation of corporate discipline. Many companies have continued to announce refinancing transactions and the sale of non-core assets to strengthen their balance sheets. The potential revaluation on these assets remains very considerable. The new year, 2018, could see normalisation in price dislocation for a whole market segment, plus a rebound in value, provided monetary policies normalise and the global economy benefits from the US fiscal stimulus, ongoing improvement in Europe, and stability in China.
Share class (K-GBP)
(1) The rating grades the funds on a scale from 1 to 7. This rating system is based on the average fluctuations of the net asset value over the past five years. It corresponds to the variation range of the portfolio upwards and downwards. If the net asset value is less than 5 years old, the rating is determined by other regulatory calculation methods. Historical data such as those used to calculate the rating may not be a reliable indication of the future risk profile. The current category is neither a guarantee nor an objective. Category 1 does not signify a risk-free investment.